A new congressionally mandated report from the National Academies of Sciences, Engineering, and Medicine assesses the U.S. Coast Guard’s ability, methods, and role in conducting the certificate of compliance (COC) program for the foreign-flag tanker ships known as liquefied gas carriers (LGCs) and considers the need for statutory reforms.

As recently as 2015, the United States exported no liquefied natural gas and little liquefied petroleum gas. However, developments in hydraulic fracturing have rapidly shifted the country’s trajectory from a net importer to the world’s largest producer and net exporter of these energy products. There are seven U.S. export terminals, with 18 new or expanded terminals being planned; most of these are in the Gulf of Mexico. All foreign-flag LGCs must undergo routine safety and working environment inspection by the Coast Guard and must also comply with a separate annual COC examination that certifies them to carry hazardous bulk liquids. Already record levels of LGC arrivals are forecasted to nearly double by 2030, causing an increased demand for qualified inspectors to carry out these examinations.

The report says that a comprehensive, multilayered, international, and collaborative regime for assuring LGC safety has emerged in the decades since the advent of the Coast Guard’s COC program in the 1970s. Therefore, Congress and the Coast Guard can and should undertake reforms to leverage risk assessment methods that target higher risk vessels. This will enhance the program’s safety assurance and environmental protection role and make more efficient use of the limited number of qualified inspectors to certify the growing number of LGCs.

Specifically, the report recommends that Congress amend the COC program’s statutory requirements, authorizing the Coast Guard to use indicators of risk to determine the frequency and scope of exams, and extending the validity of certificates to five years, which is in alignment with other major international standards. The report also contains other recommendations for improving the risk assessment and foreign fleet monitoring capabilities of the Coast Guard.

DETAILS: Reforming the Coast Guard’s Certificate of Compliance Program for Liquefied Gas Carriers: Promoting Efficient Implementation and Safety Effectiveness is available for immediate release. Media inquiries should be directed to the Office of News and Public Information at tel. 202-334-2138 or email news@nas.edu.

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